Southern Hemisphere Mining, an Australian junior company, reports that Lundin Mining has earned a 20% interest in their Chilean joint venture company, Minera Llahuin SCM, after completing its initial expenditure commitment of $3 million. The Llahuin copper-gold exploration project is located in the Coquimbo region of central Chile, approximately 250 km north of Santiago and 56 km from the Pacific Ocean. Lundin’s spending of $3 million formed part of an initial phase of exploration spending at Llahuin totaling $6 million, jointly provided by Lundin and Southern Hemisphere. Drilling on the project through mid-May totaled 54,000 m.
Lundin has elected to continue to the next phase of investment in the Llahuin project, comprising $10 million of project expenses that it will solely fund to earn an additional 31% of the project by November 2015. In total, Lundin Mining can earn up to 75% of the Llahuin project in three phases by spending a total of $35 million by November 2018.
In 2012, Southern Hemisphere reported NI 43-101 and JORC compliant Llahuin measured and indicated resources of 145 million mt grading 0.30% copper, 0.10 g/mt gold, and 0.006% molybdenum at a 0.28% copper equivalent cut-off.